For QE30/9/2013, Takaful's net profit rose 5% y-o-y but dropped 22% q-o-q to RM33 million. Operating revenue also showed the same pattern - increased by 5% y-o-y but dropped 7% q-o-q to RM394 million.
The q-o-q decline in profit before zakat & tax was attributed to lower surplus transfer from Family & General Takaful. YTD revenue dropped due to lower sales generated by Family Takaful Group Credit product and partly offset by the increase in sales of Group Medical and Group Term products.
Table: Takaful's last 8 quarters' results
Chart 1: Takaful's last 34 quarters' results
Valuation
Takaful (closed at RM11.44 yesterday) is now trading at a PE of 12.2 times (based on the last 4 quarters' EPS of 93.5 sen). At this PE multiple, Takaful is deemed attractive, given its high CAGR of 16-17%.
Technical Outlook
The stock has been in an uptrend line with support at RM11.50.
Chart 2: Takaful's weekly chart as at Nov 10, 2014 (Source: Tradesignum)
Conclusion
Based on the good financial performance, steady growth, attractive valuation and bullish technical outlook, Takaful is still a good stock for long-term investment.
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Takaful.
Hi Alex,
ReplyDeleteCan you provide some analysis about BIMB?
Thanks
Dear hunteroz,
ReplyDeleteAt RM4.15, BIMB is trading at a PE of 18x & a PB of 2.3x. These are fairly high valuation, given the more aggressive rivals are emerging.
Chartwies, the stock's accelerated uptrend has run out of steam. If it breaks the RM4.15 uptrend line support, BIMB's price movement could transition into a sideways "trend".
I would rate it a HOLD for now or a SELL INTO STRENGTH at RM4.40.